That is arguing semantics. When people inherit things it is their understanding that it is theirs. If my grandma left me the house but owed 1 million in unpaid debt, you effectively inherit the debt. Regardless of the fact that you could opt out of inheriting it.
People often go into personal debt to retain inheritance.
On a separate note inheritance/estate tax is robbery by the federal government.
lightnsfw@reddthat.com 1 day ago
but if theres enough debt the other assets go towards that rather than the inheritors.
deranger@sh.itjust.works 1 day ago
That’s literally what I just said. Debts are paid out of the estate.
Dasus@lemmy.world 1 day ago
I’m not sure the whole “debts aren’t inherited” part applies everywhere.
Certainly does in my country. Although like in the rare instance there was something you absolutely wanted to inherit, but there was also a mountain of debt, you couldn’t decide to inherit without also taking on the debt. Even if that inherited thing was literally worthless and would not yield anything when sold.
Although such an object would probably be able to gifted, but like technically, that’s how it’d go.
But here’s the bit that actually made me write my comment:
youtube.com/shorts/_pkNndF6O_M
Idk how it works where that guy lives, but it’s clip from an American standup, talking about inherited debt. Might just be made up, obviously, but according to this article more than half the states still have “filial responsibility” laws.
deranger@sh.itjust.works 1 day ago
If you read that article, you will see the exact two examples that I used for when you would be responsible for the debt. The third that I didn’t list was mishandling the estate as the executor.
lightnsfw@reddthat.com 1 day ago
My point was that if you have too much debt your inheritors aren’t going to get anything when you die so just saying that debt doesn’t get passed on like it’s nothing is kind of disingenuous. I guess if you don’t care about leaving anything to your family you don’t need to worry about it but personally I want mine to get as much as possible.
deranger@sh.itjust.works 1 day ago
It’s not disingenuous in the slightest. Debt does not get passed on, full stop. You are not responsible for the debts of your parents except for a few niche scenarios. Debts and assets are separate things.
doingthestuff@lemy.lol 19 hours ago
Smart and rich people get around inheritance taxes by systematically giving wealth to their families over time while they are still living.